This is an Invest Wisely minute brought to you by Iowa State
University Extension.

Investing in bonds can help you diversify your portfolio. You
are a lender. You loan your money to a government entity, corporation,
or a financial institution and receive regular interest -- either
semi-annually, annually, or when you redeem the bond.

Risk with bonds can be minimized. For example, don’t
buy bonds with long maturities when interest rates are low. Stick
to short-term bonds that mature in 3 years or less or intermediate-term
bonds that mature in 3 to 20 years. Purchase bonds with different
maturity dates.

Other tips for reducing risk -- Diversity across different bond
issuers. And check the credit worthiness of the bond issuer.

Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.